Yum Vexed by China Woes

The operator of KFC, Pizza Hut and Taco Bell sees same-store sales fall by a double-digit rate in China for a third consecutive month.

Yum! Brands left a bad taste in investors' mouths after announcing yet another month of weak same-store sales.

The operator of KFC, Pizza Hut and Taco Bell restaurants, Yum reported that same-store sales in China declined 13% in July (see Emerging Markets Daily), on top of a 10% drop in June and 19% decline in May. The quality of chicken meat remains a residual issue in China, which accounts for 40% of sales. Worries about meat...